Active versus passive debate redundant for some financial planners
Financial planners with more than a hundred clients are not able to actively manage their portfolios, making the active versus passive debate redundant for this group, according to the Zenith Investment Partners chief executive officer, David Wright.
Wright participated as one of the inquisitors at the PortfolioConstruction Forum Conference, following the presentation of Pinnacle Advisory Group's director of research, Michael Kitces.
During the presentation, Kitces provided his own framework to understand the opportunities for value creation in client portfolios, while referring to the 'active versus passive' debate.
Wright said active portfolio management was too demanding for financial planners with 100 or more clients.
"But if you have 30 clients, all high net worth, then it should be alright," Wright added.
PortfolioConstruction Forum Conference attendees were asked to answer whether they use active or passive investment management using an electronic survey, with more than 80 per cent favouring active management.
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